BPC I

closed

The proposed project would help finance the foreign exchange cost of the Chururaqui hydroelectirc plant, which will serve the capital city of LaPaz, and associated transmission and distribution facilities. Construction of the first unit in the ll MW plant has begun in the Zongo Valley. The proposed credit will also finance the foreign exchange costs of the transmission and distribution system expansion needed to deliver the new power to customers and improve the efficiency of the Bolivian Power Company's system. The first unit will provide enough power to eliminate the present deficiency; however, a second unit will be needed to meet increased demand immediately after the first unit goes into service. The proposed project would help finance the Corani hydroelectric plant, the associated transmission and distribution facilities, and related engineering services. The 27 MW power plant and reservoir would serve: (i) the COMIBOL mines, the biggest potential earner of foreign exchange and an important factor in Bolivia's internal economy as the largest single employer of labor; and (ii) the town of Cochabamba, an important agricultural area as well as a potential center for light industry. A transmission line will connect the new plant with the town and the mines. This project is part of a large power expansion program to remedy the power deficiency in the country. The Corporacion Boliviana de Fomento will be responsible for starting the Corani project, which will then be taken over by ENDE, an autonomous public power company, as it develops the capacity.